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FAST FORWARD STREAMLINING TRANS-TASMAN AIR TRAVEL September 2017

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FAST FORWARD STREAMLINING TRANS-TASMAN AIR TRAVEL September 2017 FAST FORWARD STREAMLINING TRANS-TASMAN AIR TRAVEL September 2017 In partnership with ABOUT TTF The Tourism & Transport Forum (TTF) is the peak industry group for the Australian tourism, transport, aviation and investment sectors. A national, member-funded CEO forum, TTF advocates the public policy interests of the leading corporations and institutions in these sectors. TTF uses its experience and networks to influence public policy outcomes and business practices and to assist the delivery of major tourism, aviation and transport-related infrastructure projects. With the slowing of the resources sector and the decline of many traditional manufacturing industries, the visitor economy has become the new hero industry for economic growth. A key driver for our future prosperity is international tourism, powered largely by the Asia Pacific region, which now accounts for seven of our 10 top source markets. ABOUT AIRBIZ Airbiz specialises in international aviation consultancy. Our clients include airport owners, operators, investors, airlines, government agencies and other aviation stakeholders. The Airbiz team consists of airport and terminal planners, business analysts, aviation marketing specialists, project facilitators, simulation experts and creative strategists. Team members are renowned for their lateral thinking resulting in innovative and cost effective outcomes. The Airbiz team has accumulated over 30 years’ experience in the aviation industry and has successfully completed over 2000 projects in 50 countries, on five continents. Airbiz is an active contributor and World Business Partner of Airports Council International (ACI). Airbiz is recognised globally as a specialist aviation industry advisor that delivers tailored solutions for aviation clients. For further information, please contact: Tourism & Transport Forum (TTF) Level 6, 7 Macquarie Place Sydney NSW 2000 T: +61 2 9240 2000 www.ttf.org.au 2 FAST FORWARD – STREAMLINING TRANS-TASMAN AIR TRAVEL CONTENTS MESSAGE FROM THE CEO 2 PURPOSE OF THIS REPORT 3 CONTEXT 4 OUR VISION 6 PREVIOUS INITIATIVES 7 CURRENT TASMAN JOURNEY 8 KEY ISSUES 10 PASSENGER DECLARATIONS 10 MULTIPLE TOUCHPOINTS AND DUPLICATED PROCESSES 11 AVIATION SECURITY SCREENING 12 DUTY FREE 13 TERMINALS 14 TRENDS AND CASE STUDIES 15 U.S. CUSTOMS AND BORDER PROTECTION (USCBP) PRE-CLEARANCE AGREEMENTS 15 COMMON TRAVEL AREA 16 EU SCHENGEN AGREEMENT 17 FAST FORWARD 18 SCENARIO 1: COMMON BORDER 18 SCENARIO 2: FULL PRE-CLEARANCE (BY FLIGHT) 19 SCENARIO 3: PRE-CLEARANCE (BY PASSENGER) 20 COMPARING THE SCENARIOS 21 WHAT STAKEHOLDERS SAY 22 RECOMMENDATIONS 23 ABOUT THE AUTHORS 25 1 FAST FORWARD – STREAMLINING TRANS-TASMAN AIR TRAVEL MESSAGE FROM THE CEO With the end of Australia’s mining boom and the decline of many traditional manufacturing sectors, the visitor economy has become the new hero industry on which we are pinning our hopes for growth. A key driver of our future is international tourism, powered largely by the Asia Pacific region, which now accounts for seven of our top 10 source markets. But as we continue to enjoy, and increasingly rely upon, record visitor arrivals, we are quickly discovering there are also costs associated with success. The visitors we hoped for are now arriving in ever-larger numbers, but this is resulting in lengthening queues and waiting times in our international airport terminals, adversely influencing the first and last impressions which visitors have of our country. It is impractical and frankly unaffordable to continually build or extend infrastructure to absorb the growth. We need to find other ways of reducing the queues, improving asset productivity and continually enhancing the visitor experience, without compromising and preferably improving security. One way to do this is to remove from lines the vast majority of travellers who don’t need further checks, in order to focus on the very few who do, by leveraging the latest screening technology. To this end, we have asked the global aviation consultancy Airbiz to explore scenarios to streamline border processing in our airports. The most obvious market in which to test such reforms is the trans-Tasman, as New Zealand and Australia are not only geographically and culturally close, but also deliver more visitors to each other than any other market. An earlier TTF report produced by Airbiz identified the bottlenecks at Australia’s international airports, and highlighted global best practice in dealing with such issues. This discussion paper takes the next step, specifically and independently exploring opportunities to streamline border processing on both sides of the Tasman. It also examines the challenges and presents scenarios which, if successful on the Tasman, potentially could be adapted, in whole or in part, for other trusted, large-volume markets such as China, in order to improve the customer experience in Australasian airports. But most importantly, this paper serves to stimulate discussion of the scenarios for border reform, technological and regulatory opportunities and challenges, and lateral solutions for the future. Margy Osmond Chief Executive Officer, Tourism & Transport Forum (TTF) 2 FAST FORWARD – STREAMLINING TRANS-TASMAN AIR TRAVEL PURPOSE OF THIS REPORT Trade and travel between Australia and New Zealand are critically important. The two countries are intrinsically linked and increasingly ACKNOWLEDGEMENT integrated socially, economically and legislatively benefiting not only their own citizens and economies, but also their interactions with the global TTF and Airbiz would like to acknowledge the following community. stakeholder organisations for their significant contributions to the preparation of this report: Governance and regulatory environments in both countries are increasingly • Adelaide Airport aligned and provide the basis for close collaboration between their governments and agencies across a range of industries and issues. • Air New Zealand • Auckland Airport In August 2014, TTF published a paper “Bringing our Neighbour Closer”, which recommended a range of reforms to border and immigration • Australian Department of Immigration procedures, with a view to unlocking latent travel demand between and Border Protection Australia and New Zealand. • Australian Department of Infrastructure and Regional Development, Office of Transport Security A key aim of the report was to facilitate a more domestic-like travel experience for trans-Tasman journeys through increased automation of • Brisbane Airport border controls and the introduction of self-declarant green channels on • Christchurch Airport arrival, to help cut overall travel times and speed passenger movement • Gold Coast Airport through major airports. • Melbourne Airport TTF is working closely with aviation planning specialist Airbiz, a key industry • New Zealand Aviation Security Service thought-leader, to further develop the rationale for reform by exploring • New Zealand Civil Aviation Authority specific options for streamlining the trans-Tasman air travel experience. • New Zealand Customs Service This report is focused on how best to deliver a smarter, better experience • New Zealand Ministry of Primary Industries for passengers flying between Australia and New Zealand, while also • New Zealand Ministry of Transport improving the efficiency of airports, airlines and border management authorities. It offers three scenarios which are intended to drive discussion. • Perth Airport • Qantas Airways Although the report is also likely to spark debate on a range of related • Queenstown Airport topics, it is deliberately focused only on identifying and describing technology and different thinking on infrastructure use, which will enable • Sydney Airport change, examining global best practice, and proposing for consideration • Virgin Australia Airlines scenarios for reform. It specifically does not address the regulatory, • Wellington Airport political or commercial issues associated with change. 3 FAST FORWARD – STREAMLINING TRANS-TASMAN AIR TRAVEL CONTEXT With the notable exception of our sports rivalry, few nations enjoy relationships as close as Australia and New Zealand. Beyond our common heritage and the military ties which spawned the ANZAC partnership, we have developed and continually evolved a sophisticated commercial and social alliance, beginning in 1922 with a formal agreement to trade with each other. That agreement gained an unanticipated but significant boost just six years later when two pioneering Australian aviators, Charles Kingsford Smith and Charles Ulm – fresh from achieving the historic first flight across the Pacific Ocean – undertook the first flight across the Tasman Sea, journeying from Richmond, north of Sydney, to Wigram Airfield near Christchurch in a time of 14 hours, 25 minutes – five minutes longer than it now takes to fly nonstop from Melbourne to Los Angeles. In doing so, not only did Kingsford Smith and Ulm make aviation history for the second time in a year. They also cleared the way for scheduled flights between Australia and New Zealand, which started just over a decade later in 1940, when Tasman Empire Airways Limited, the predecessor to Air New Zealand, commenced flying boat services between Auckland and Sydney, initially once a week. The market for two-way air travel In its first year TEAL completed 130 trans-Tasman flights. Now, an average between Australia and New Zealand of 128 aircraft cross the Tasman every day, linking nine airports in Australia is significant, mature, diverse and five in New Zealand
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